Cost Depletion. Tina acquires an oil and gas property interest for $200,000 in the current year. The


Cost Depletion. Tina acquires an oil and gas property interest for $200,000 in the popular year. The forthcoming knowledge about popular year operations is supp lied for purposes of computing the totality of Tina's depletion and intang ible training and fruit require (IDC) deductions:

a. What is the require depletion totality if the IDCs are expensed?

b. What is the require depletion totality if the IDCs are capitalized?

c. How considerable depletion is deducted on the tax revert?

d. Should the IDCs be capitalized or expensed? Explain.